Unlocking the Potential of Cleantech for Hard-to-Abate Industries: Sustainability Benefits Are Still Undervalued 

The Clean Resource Innovation Network (CRIN) adopters sector working group is interested in exploring the experiences of both adopters and innovators within the innovation development lifecycle.  Through the CRINetwork, 42 cleantech projects have been funded to accelerate the development, commercialization, and adoption of technology with the potential to improve Canada’s environmental performance in oil & gas. As these projects come to completion now and within the next year, many have achieved great successes, and some have experienced various barriers to adoption.

The ERA study released a year ago explores the barriers to adoption in depth and provides effective recommendations to overcome barriers. We must navigate and overcome these barriers to address the growing urgency to reduce emissions and adopt cleaner technologies in Canada’s hard-to-abate industries. The ERA’s comprehensive study revealed that major barriers persist, including the consistent undervaluing of sustainability benefits. 

Industry owners and operators are also hesitant to adopt new cleantech solutions, not because they doubt the technology, but because current incentives and regulatory frameworks fail to account for broader environmental and social benefits. Without meaningful financial and policy support, the business case for cleantech remains weak in the eyes of some potential adopters. 

Through interviews with key players—including innovators, adopters, and ecosystem enablers—this study identified critical gaps in funding, policy alignment, and market readiness. It also explored how more aggressive incentives, streamlined grant processes, and better alignment between stakeholders could unlock more of the significant benefits of cleantech in Canada. 

• Tech Innovator Needs: Innovators often struggle with skillset gaps in business, finance, and technical expertise. They may lack networks, funding for high-cost technology validation, and face lengthy, rigid grant processes that are hard to manage. Many also struggle to define strong use cases for their technology or have the marketing expertise to promote it effectively. 

• Context: Market conditions and external factors create additional barriers. The boom-bust nature of industries like oil and gas leads to instability, while sustainability benefits are undervalued, limiting incentives for clean tech adoption. Lengthy vendor approval processes, risk-averse investors, policy fluctuations, and a crowded innovation space make it difficult for new technologies to gain traction. Unrealistic expectations for rapid impact and the high costs of first-of-a-kind (FOAK) projects further deter investment. 

• Integration: A lack of coordination among ecosystem players hinders commercialization. Funding gaps for large-scale projects, investor knowledge gaps, unclear funding success criteria, and concerns over intellectual property protection create inefficiencies. Many innovators struggle to secure long-term support, while competition and secrecy within the ecosystem limit collaboration. 

A significant number of recommendations were also identified in the report; this is a very high-level summary: 

• Near-term strategies to accelerate clean technology adoption include clarifying funding criteria and application feedback, bridging funding gaps, and introducing more flexible agreements. Time-bound IP terms & conditions and expanding continuous intake access would support diverse innovators. Embedding experienced advisors and marketing success stories would further boost industry confidence and participation. 

• Medium-term strategies focus on sustained progress. Funding continuity, an innovator support program, and industry-driven challenges would encourage momentum. Adopter calls and increased engagement with policymakers and regulators would create stronger market pull for clean technologies. These initiatives aim to bridge gaps and foster collaboration. 

• Long-term, strategic changes are also crucial for a thriving cleantech ecosystem. Establishing technology validation hubs, exploring alternative procurement and financing arrangements could drive commercialization.  

What do you think are critical elements on the path forward? What strategic recommendations to close the gap between innovation and adoption do you support? And how quickly can we take the necessary steps to make cleantech a cornerstone of Canada’s sustainable future? Share your thoughts.